$54.2 Million in Promised Pension Benefits Awarded to 1,124 Retirees

It was a victory that was a long time coming, but in this case, justice delayed was not justice denied. On Friday, December 12, a jury in the State of New York Supreme Court in Schenectady County found that the Roman Catholic Diocese of Albany and several other defendants had mismanaged pension funds for over 1,100 retirees, denying them retirement income they had long counted on. The jury also determined that the defendants acted so wantonly and recklessly that punitive damages were warranted. The decision will result in plaintiffs receiving $54.2 million in restitution.

For Mary Hartshorne and other plaintiffs in the case, the jury's verdict was a godsend. Since 2018, Mary and those who are also part of the suit have been waiting for this resolution, unsure if it would ever come to pass.

Personal Stories Underscore the Human Cost

When Mary retired from St. Clare’s Hospital in 2005 after nearly 30 years of service, she dreamed of peaceful mornings sitting by the fireplace in her lakeside home. Her promised pension — $864 a month — covered her mortgage and gave her security. But in 2018, Mary learned her pension was gone. At the age of 69, she was forced to sell her home and return to work assisting other seniors, relying on government benefits and family support to survive.

Mary Hartshorne, Louis Lopez and Anne Hotaling in the Schenectady County Courthouse. Jesse Taylor/WAMC

Jeanette Bearzi faced a different but equally painful reality. After 23 years working at St. Clare’s, Jeanette counted on her modest pension — $639 a month — to cover rent and medications. When the plan collapsed, she spiraled into housing insecurity, moving between friends’ homes, and battling worsening depression. At 70, despite chronic disabilities, Jeanette still works to survive. “I don’t know what I’ll do when I can’t work anymore,” she said.

These are only two of the 1,124 former St. Clare’s employees who were blindsided when the pension plan failed. Their heartbreak is at the center of Hartshorne v. Roman Catholic Diocese of Albany. In closing arguments, AARP Foundation attorneys urged accountability for broken promises. They explained that the Albany diocese and hospital leadership controlled the pension plan, failed to adequately fund it for years, neglected to insure the plan to protect its assets, and misled employees with repeated assurances of their retirement security — even as actuaries warned the plan would collapse.

Plaintiffs asked the jury to hold all defendants liable for breaches of fiduciary duty, and to award actual and punitive damages to restore the plaintiffs and to deter future misconduct. And that’s precisely what happened in the courtroom on Friday.

A Victory for Pensioners

“Today, justice caught up with the facts,” said William Alvarado Rivera, senior vice president for Litigation at AARP Foundation, after the verdict was announced. “The jury confirmed what the evidence showed: The diocese betrayed our clients’ trust. They breached their legal and fiduciary obligations to these dedicated workers, and those breaches caused profound harm.”

“After more than seven years of prayers, the wonderful St. Clare’s pensioners have finally received recognition of the wrongdoing we suffered through. Now justice will prevail,” said Mary Hartshorne. “Words are not enough but our gratitude is immense.”

“We are grateful for our clients’ unyielding courage and their enduring faith,” Rivera said. “It has been an honor to represent them and let them tell their stories. Our priority now is to ensure that relief reaches the pensioners as quickly and equitably as possible.”

Beyond the verdict, the case shines a light on the vulnerability of workers in church-affiliated pension plans and the urgent need for transparency and stronger protections.

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